Quality Education is of prime importance to any individual and students go the extra mile to achieve that. However, the cost of education is on the rise these days and opting for an education loan seems to be the single best solution.
Education loan is a loan that students apply for in order to complete their educational requirements. Almost all banks & NBFCs in India offer education loans.
Education Loan Interest Rates
The information is indicative
Parameters for Education Loan
Education Loan EMI Calculator
Education Loan EMI Calculator is a smart tool that calculates your monthly EMI amount payable to the lender. It’s basically a slider where you enter the values; Principal amount (P), Time duration (N), and Rate of interest (R) to find out your EMI and figure out your finances in advance.
Documents Required for Education Loan
|Application form with photograph||Application form with photograph|
|Identity and Residence proof||Identity and Residence proof|
|Last 6 months bank statements||Last 6 months bank statements|
|Processing fee cheque||Processing fee cheque|
|Latest Salary Slip||Proof of Business|
|Form 16||Business Profile and Previous 3 years Income Tax returns (self and business)|
|Previous 3 years Profit/Loss and Balance Sheet|
Process of Applying
There are numbers of ways in which you can avail an education loan. You can either go to the respective bank and inquire about the loan process, or you can apply online. Once the loan is finalized, the bank will initiate the process by collecting your documents, evaluate the course of study for which you wish to take the loan and then keep you notified.
Different modes of Saving
A great alternative to any financial need is to count on your savings.
Some methods of savings are Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) in mutual funds and more.
Let’s find out the best way to save your money assuming you need to save Rs. 25 lakh in 5 years for your education.
|Type||Monthly Investment||Interest Rate||Duration (Years)||Amount on Maturity|
|Savings Account||Rs. 41,666||4%||5||Rs. 27.7 Lakhs|
|Recurring Deposit||Rs. 41,666||6%||3||Rs. 29.2 Lakhs|
|SIP in Mutual Funds||Rs. 41,666||18%||5||Rs. 40.7 Lakhs|
Hence from the above table SIP is the most worthwhile savings scheme; as SIP will enable you to invest regularly, keeping in mind your long-term savings goal and making you financially stable.
Learn about ClearTaxSave to understand personalised investment schemes for you.